Gold on a roll amid global uncertainty
North Queensland hosts a raft of projects set to benefit from strong prices, including new developments by established miners Evolution Mining and Minjar Gold.
Evolution has a $60 million project set to extend mining operations at the Mount Carlton gold site by going underground, while Minjar Gold’s Pajingo operation near Charters Towers has started construction of a new decline.
Resolute Mininglast month announced a million ounce upgrade in ore reserves for its Ravenswood gold mine, setting it on the path to scale up expansion plans.
Perth-based Greenpower Energy this month acquired a package of former gold mines in North Queensland in a deal with Q-Generate, noting the strong gold prices now compared to a rate below $US400 an ounce when the operations shut down in the 1990s.
Another junior keen to get amongst the action in a climate of $A2000-plus prices is Ausmex, which has a 15,000m reverse circulation and deep diamond core drilling program underway at itsMt Freda complexnear Cloncurry
The rising demand for the ‘safe haven’ metal comes as Australian production also peaks, with output reaching an all-time high of 10.3 million ounces in the 2018-2019 financial year, according to a Surbiton Associates report quoted in national media.
However IBISWorld senior industry analyst Jason Aravanis recently warned that the lack of new gold discoveries in Australia over the past decade represented a rising challenge for the industry.
Known gold reserves had consistently declined amid high production and low replacement rates, he said.